NAB unconcerned over Murray capital target

The recent Financial System Inquiry was a "necessary and important process" which had the full support of the National Australia Bank, Michael Chaney, NAB chair, told the bank's annual general meeting in Brisbane yesterday.

On the recommendations for holding higher capital, Chaney said NAB was in a strong position to meet new regulations.

"We believe our balance sheet strength positions us well to meet regulatory changes and we look forward to continuing to work with government and regulators to ensure Australia continues to enjoy the benefits of a world class financial system while avoiding impediments to economic growth," he said in his prepared remarks.

Chaney said of David Murray's inquiry: "We fully support initiatives that create a more efficient and stronger financial system".

He told shareholders the inquiry process was not over and NAB continued to be actively involved in the debate.
 
In response to a question from the floor about the impact the report would have on the bank, Chaney said: "We will all be affected by the outcome of the Murray report, but we don't see it as something of concern to us, because we are very well capitalised, and our insurance and super businesses are running in an ethical and straightforward way. We are in good shape."
 
"I think it is a very good report," Chaney said.

National Australia Bank said "the outlook for growth in Japan and the euro zone is poor, but recent free trade agreements and population growth should assist Australia amid subdued economic conditions."
 
Chaney said the outlook for the economy was "subdued", despite a boost from the recent free trade agreement with China. He said Australia could expect reasonable conditions going forward.

The bank was continuing to look for opportunities to offload its UK banks.

Chief executive, Andrew Thorburn, said:  "We are examining a broader range of exit options, including those provided by public markets so that we can concentrate on our businesses in Australia and New Zealand."